The European Union has pledged €1.1 billion to support the African Union in implementing the African Continental Free Trade Area (AfCFTA), a landmark initiative aimed at increasing intra-African trade and economic integration.
The announcement was made by Mr. Massimo De Luca, Head of Cooperation at the EU Delegation to Nigeria and ECOWAS, during the 4th African Union MSMEs Forum held in Abuja. He highlighted that while the AfCFTA holds major promise for Africa’s economic future, access to finance continues to hinder growth, particularly for Micro, Small, and Medium Enterprises (MSMEs).
“Our support of €1.1 billion is focused on helping the African Union make AfCFTA a success. This trade agreement is a major step toward realising Africa’s economic potential,” said De Luca. “The EU is committed to partnering with Africa and ECOWAS for inclusive and sustainable development.”
He also stressed the importance of recognising the role of the informal sector, warning that ignoring it could trap the continent in ongoing underdevelopment.
Speaking at the same event, Ms. Elsie Attafuah, UNDP Resident Representative in Nigeria, described MSMEs as the backbone of local economies. She said these businesses require more than just resilience to thrive.
“MSMEs are the backbone of our local economies. To grow, they need working capital, platforms for innovation, and access to larger markets,” she said.
In a related announcement, Ambassador Afolabi Oke, Permanent Representative of the African Union Sixth Region Global (AU6RG) to Nigeria and ECOWAS, confirmed that Mr. Temitola Adekunle-Johnson, Special Adviser to the Nigerian President on Job Creation and MSMEs, will now also serve as Special Adviser to the AU Sixth Region on the same portfolio.
“The AU6RG speaks for Africans in the diaspora. As part of the African Union, we aim to unite people of African descent outside the continent and promote African interests,” Oke said.
Also contributing to the forum, Mr. Abubakar Abba Bello, Managing Director of the Nigerian Export-Import Bank (NEXIM), reinforced the bank’s commitment to MSME financing.
“We must focus on growing our value chains. Supporting MSMEs is key to the success of AfCFTA,” he said.
